Azerbaijan suspends license of another insurance company

The State Insurance Supervision Service under the Ministry of Finance of Azerbaijan has suspended the license of the Era Trans Sigorta insurance company, said the report of the State Service Nov.26.

The report said that the reason for the decision taken by the Ministry of Finance on Nov. 25 is mismatch of the aggregate capital to the minimum requirements specified by the legislation, as well as due to other irregularities in the activity of the insurer.

In accordance with the law, six months are provided to eliminate defects.

The requirement of the Ministry of Finance for the minimum size of the total capital of insurers, operating by non-life types, amounts to 5 million AZN.

Era Trans Sigorta Company operates since 1994. The company collected premiums worth 414, 945 AZN, with payments worth 1, 029, 562 AZN, according to the results of activity in January-October.

There are 27 insurance companies and one reinsurance company in Azerbaijan.

The license of the three companies, Royal Sigorta, Gunay Sigorta and Basak İnam Sigorta Sirketi, has been suspended this year. The license of Royal Sigorta was completely revoked in early September due to its failure to meet the minimum requirements to the capital, while Gunay Sigorta regained its license.

Currently, the Basak İnam Sigorta Sirketi company, the license of which was suspended in early November, is taking measures to increase its capital.

The official exchange rate for November 26 is 0.7844 AZN / USD.

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